26 USC 7602(c)(3)(B): Third party identity information

About This Project

This project uses data compiled by the Sunshine in
Government initiative, a coalition of journalism and transparency groups. SGI compiled data
from federal agency annual FOIA reports to
track how often b(3) exemptions were used. SGI also standardized the exemptions
since some agencies used slightly different citations of the same laws. In some
cases, agencies listed general laws without specifying a section under which
information was withheld. This project does not include information from agencies
that use no b(3) exemptions in 2008 or 2009. ProPublica compiled information about FOIA denials.

TITLE 26--INTERNAL REVENUE CODE
Subtitle F--Procedure and Administration
CHAPTER 78--DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE
Subchapter A--Examination and Inspection

Sec. 7602. Examination of books and witnesses
(a) Authority to summon, etc.
For the purpose of ascertaining the correctness of any return,
making a return where none has been made, determining the liability of
any person for any internal revenue tax or the liability at law or in
equity of any transferee or fidu
ciary of any person in respect of any internal revenue tax, or
collecting any such liability, the Secretary is authorized--
(1) To examine any books, papers, records, or other data which
may be relevant or material to such inquiry;
(2) To summon the person liable for tax or required to perform
the act, or any officer or employee of such person, or any person
having possession, custody, or care of books of account containing
entries relating to the business of the person liable for tax or
required to perform the act, or any other person the Secretary may
deem proper, to appear before the Secretary at a time and place
named in the summons and to produce such books, papers, records, or
other data, and to give such testimony, under oath, as may be
relevant or material to such inquiry; and
(3) To take such testimony of the person concerned, under oath,
as may be relevant or material to such inquiry.
(b) Purpose may include inquiry into offense
The purposes for which the Secretary may take any action described
in paragraph (1), (2), or (3) of subsection (a) include the purpose of
inquiring into any offense connected with the administration or
enforcement of the internal revenue laws.
(c) Notice of contact of third parties
(1) General notice
An officer or employee of the Internal Revenue Service may not
contact any person other than the taxpayer with respect to the
determination or collection of the tax liability of such taxpayer
without providing reasonable notice in advance to the taxpayer that
contacts with persons other than the taxpayer may be made.
(2) Notice of specific contacts
The Secretary shall periodically provide to a taxpayer a record
of persons contacted during such period by the Secretary with
respect to the determination or collection of the tax liability of
such taxpayer. Such record shall also be provided upon request of
the taxpayer.
(3) Exceptions
This subsection shall not apply--
(A) to any contact which the taxpayer has authorized;
(B) if the Secretary determines for good cause shown that
such notice would jeopardize collection of any tax or such
notice may involve reprisal against any person; or
(C) with respect to any pending criminal investigation.
(d) No administrative summons when there is Justice Department referral
(1) Limitation of authority
No summons may be issued under this title, and the Secretary may
not begin any action under section 7604 to enforce any summons, with
respect to any person if a Justice Department referral is in effect
with respect to such person.
(2) Justice Department referral in effect
For purposes of this subsection--
(A) In general
A Justice Department referral is in effect with respect to
any person if--
(i) the Secretary has recommended to the Attorney
General a grand jury investigation of, or the criminal
prosecution of, such person for any offense connected with
the administration or enforcement of the internal revenue
laws, or
(ii) any request is made under section 6103(h)(3)(B) for
the disclosure of any return or return information (within
the meaning of section 6103(b)) relating to such person.

(B) Termination
A Justice Department referral shall cease to be in effect
with respect to a person when--
(i) the Attorney General notifies the Secretary, in
writing, that--
(I) he will not prosecute such person for any
offense connected with the administration or enforcement
of the internal revenue laws,
(II) he will not authorize a grand jury
investigation of such person with respect to such an
offense, or
(III) he will discontinue such a grand jury
investigation,
(ii) a final disposition has been made of any criminal
proceeding pertaining to the enforcement of the internal
revenue laws which was instituted by the Attorney General
against such person, or
(iii) the Attorney General notifies the Secretary, in
writing, that he will not prosecute such person for any
offense connected with the administration or enforcement of
the internal revenue laws relating to the request described
in subparagraph (A)(ii).
(3) Taxable years, etc., treated separately
For purposes of this subsection, each taxable period (or, if
there is no taxable period, each taxable event) and each tax imposed
by a separate chapter of this title shall be treated separately.
(e) Limitation on examination on unreported income
The Secretary shall not use financial status or economic reality
examination techniques to determine the existence of unreported income
of any taxpayer unless the Secretary has a reasonable indication that
there is a likelihood of such unreported income.
(Aug. 16, 1954, ch. 736, 68A Stat. 901; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-248, title
III, Sec. 333(a), Sept. 3, 1982, 96 Stat. 622; Pub. L. 105-206, title
III, Secs. 3412, 3417(a), July 22, 1998, 112 Stat. 751, 757.)
Amendments
1998--Subsec. (c). Pub. L. 105-206, Sec. 3417(a), added subsec. (c).
Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 105-206, Sec. 3417(a), redesignated subsec. (c)
as (d). Former subsec. (d) redesignated (e).
Pub. L. 105-206, Sec. 3412, added subsec. (d).
Subsec. (e). Pub. L. 105-206, Sec. 3417(a), redesignated subsec. (d)
as (e).
1982--Pub. L. 97-248 redesignated existing provisions as subsec.
(a), added subsec. (a) heading, and added subsecs. (b) and (c).
1976--Pub. L. 94-455 struck out ``or his delegate'' after
``Secretary'' wherever appearing.
Effective Date of 1998 Amendment
Pub. L. 105-206, title III, Sec. 3417(b), July 22, 1998, 112 Stat.
758, provided that: ``The amendments made by subsection (a) [amending
this section] shall apply to contacts made after the 180th day after the
date of the enactment of this Act [July 22, 1998].''
Effective Date of 1982 Amendment
Section 333(b) of Pub. L. 97-248 provided that: ``The amendments
made by subsection (a) [amending this section] shall take effect on the
day after the date of the enactment of this Act [Sept. 3, 1982].''